The Exchange Fund's total assets amounted to nearly $1.92 trillion on August 31, up $55.7 billion on July, the Monetary Authority announced today.

Foreign currency assets rose by $64.7 billion while Hong Kong dollar assets dropped by $9 billion.

The rise in foreign currency assets was due mainly to an increase in securities purchased but settled in the following month, purchases of foreign currencies with Hong Kong dollars and valuation gains on foreign currency investments.

The decline in Hong Kong dollar assets was due mainly to fiscal drawdowns and valuation losses on Hong Kong equities held by the Exchange Fund, which were partly offset by an increase in bank borrowing.

The Currency Board Account showed the Monetary Base at the end of August was $792.1 billion, up $21.4 billion, or 2.78%, on the end of July. The rise in the Monetary Base was due mainly to an inflow of funds into the Hong Kong dollar.

Backing Assets rose $22.9 billion, or 2.82%, to $837.2 billion. The increase was attributable mainly to the rise in the Monetary Base together with revaluation gains and interest from investments.

The rise was reflected by the increase in backing ratio from 105.65% at the end of July to 105.69% at the end of August.